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The flat taxation treats the companies the same despite their different models and value constructions, which the earlier tax regime appears to have taken into consideration. Pambazuka National Lottery, as an example, last month suspended its operations and its affiliate sports betting agency SportPesa cancelled its Sh600 million annual funding to varied sports organisations. We simply don’t see how we are in a position to presumably survive a tax of 35 per cent on gross income. We can solely think about cessation of operations to avoid continuous losses,” Martin Dunford, a director of Golden Key Casino, wrote within the letter.

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He added that ought to casinos close up shop, the enterprise will either go offshore or underground. Gross annual turnover of casinos in Kenya stands at an estimated $20 million , based on a report by advisory firm PricewaterhouseCoopers . Golden Key has annual gross income of approximately Sh200 million on which it used to pay a gaming tax of Sh24 million beneath the earlier tax rate of 12 per cent of the turnover. Lotteries give prizes to holders of random numbers while prize competitions reward individuals for his or her skill, knowledge or use of a company’s products. Click on the heading to go to the betting market overview.

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